Both books helped my to further understand complexity and why our todays working environment needs new approaches to survive. Nils Pfläging did a great job in explaining and creating standards for terms to be used when talking about complexity.

The collection of Komplexithoden (see a short summary of the first 9 ones below) is a really helpful list of possible alternatives to often blindly applied blue methods, that are not helpful to be used in complex environments.

Read on to get some impressions from the book and follow some of my learnings.

Some definitions and key insights

Complicated is …

We don’t understand it yet and need more knowledge to be able to fully understand it. But it is possible to get a full understanding by learning.

It is a measurement for missing knowledge.

Guiding question: How does it work?

Methods used to work with complicated topics are further described as Blue.

Complex is …

It is a measurement for how many surprises we need to expect. The more surprises are expected, the more complex it is. Dynamic – is the amount of surprises (that an organization can work with).

Guiding question: Who can do it?

One cannot manage complexity but one needs competence.

Methods used to work with complex topics are further described as Red. Nils created the new term Komplexithoden.

Update:2015-11 – I learned the translation for Komplexithoden is complexitools.

Complexitools

are strongly connected with human interaction

integrate thinking and doing

tight relations are more important than the tool itself – Komplexithoden increase social density

Questions to raise when searching for a method:

Does the chosen approach fit to the dynamic of the problem to solve?

Is the method dynamic robust?

Does the method match to the possible surprises to be expected by the problem?

Does the method lead to higher value relations in the organization? (Does it increase social density?)

It needs a combination of learning and practical experience – high competence. (Just learning is not enough)

Information can be shared (machines can be used) – Knowledge can be acquired through learning – Competence needs exercising.

Hierarchical control is to slow and is not dynamic enough to react in fast changing environments. Organizations need to be structured decentralized instead of hierarchical.

The periphery has close market context and the center provides services. The center is strongly connected with the periphery and “shakes with it”.

Even small remaining parts of the Theory X (see Douglas McGregor’s Theory X and Y picture, how we see the human nature) thinking lead to hierarchical-bureaucratic organizations.

Often fascinating, highly dynamic Startups (young and unexperienced beta companies) erode to default, boring Alpha companies – caused by growth and/or a crisis and the wish for more “professionalism” … best practices get copied, consultants are hired, processes and rules and more and more formal structures are established. Often too fast and unreflected – using useless alpha management rituals.

Hierarchical structure and differentiation by function is the way to become an alpha company.

Iterative cell division and decentralization of decisions lead to an adult beta company.

To become an adult beta company needs a high communication culture – many opportunities, various methods and channels for communication. Komplexithoden can support.

One can compare organizations with a theater – having a stage and a backstage. In companies the “hidden” backstage is essential for driving changes (there you can find the taboos). It needs special tools like cultural observations, special interviews and chained talks to uncover it.

Strategy was yesterday. Market dynamics overcome the illusion of 3-5 year plans (the separation of long and short term, predictability and controllability).

If all always think, integrate and arrange it does not need a long term strategy.

Motivation is intrinsic and individual. It is part of the identity. We confuse motivation with motivating (the try with extrinsically driven way like rewards, social acknowledgement, fear). Extrinsic motivation starts overlapping our intrinsic motivation – and will replace motivation by the topic with orientation to reach the extrinsic motivator (like money, acknowledgement,…)

Complexitools for Performance

In the following chapters you’ll find a brief summary for listed complexitools that belong to the area performance (in complex environments).

Letter to ourself

A description of ourself. What is our identity?

10-30 pages describing past, now and the companies perspective aiming to remember and showing the importance and urgency of a change

created identity and insights

an expression of appreciation for the organization itself and all people working in the organization

Relative goals

enable teams to act entrepreneurial – autonomous and intelligent having the whole in mind

provide hints, raise questions and foster dialog but do not judge

no up front defined fixed future values but relate achievements to other internal or external real comparable achievements … team to team

organizational value creation is not individual but team based … thats why individual goals heavily undermine value creation and the thinking

no internal negotiation necessary

e.g. relative result in comparison to the market (to another team)

Relative result comparision

actual/actual comparision

compare to other teams, external teams and other benchmarks

team measurements like costs over revenue, customer satisfaction

Relative Salary

the same salary approach does not fit as we have to consider individual roles, experiences, background and competencies.

pay the position is not working and needs to be replaced by pay the person – with fairness, fair differences

considering market value and the value through the roles for the organization

Consider:

pay fair and custom fit (and get salary out of the head)

individual abilities have to be matched by the fixed salary (not for variable parts)